Hynix backers opt for December auction, say reports

LONDON  Shareholders who bailed out memory chip maker Hynix Semiconductor Inc. in the early part of this decade are planning to put their holding up for auction in December, according to online reports. The reports quote a statement from Korea Exchange Bank as their source.

The move comes after South Korea's Hyosung Corp. dropped its bid to buy the block of shares, which represent 28.1 percent of the company and are valued at about $2.9 billion.

The shareholders, who agreed to exchange debt for stock several years ago and have been unwinding their positions ever since, have agreed to restart the sale of their remaining holding as an auction. According to the reports the shareholders will advertise the opportunity to South Korea companies around Dec. 20 and expect to receive letters of intent by the end of January, the reports said.